MBA-TEP

Personnel &
Industrial
Relations
Dr. Lorenzo C. Lorenzo

Presented by:
Narciso D. Isidro Jr.
 Labor Turnover

• Turnover, in a human resource context

refers to the characteristic of a given
company or industry, relative to rate at
which an employer gains and loses staff.
 Cost

Labor turnover is costly to the company.among

the costs involved are:

• Cost of hiring
• Cost of training
• Extra labor cost
• Extra operating costs
• Loss of goodwill
Voluntary vs. involuntary turnover
• Practitioners can differentiate between
instances of voluntary turnover, initiated at
the choice of the employee, and those
involuntary instances where the employee
has no choice in their termination (such as
long term sickness, death, moving overseas,
or employer-initiated termination).
• Typically, the characteristics of employees
who engage in involuntary turnover are no
different from job stayers. However, voluntary
turnover can be predicted (and in turn,
controlled) by the construct of turnover intent.
 Causes of high and low turnover
• High
→ Unhappy with the work
→ Compensation
→ Unsafe/Unhealthy Conditions

• Low
 Progressive Disciplinary Plans

1. Verbal warnings
– Cautions conveyed orally to the
employee
2. Written warnings
– More formal warnings that are given to
the employee in writing and become part
of the employee’s permanent record
3. Suspension
– Temporary layoff
4. Termination
– Employee is fired
A Model of the Turnover Process
 Causes of Job Dissatisfaction

Nature of Pay and Supervisors

the work benefits and coworkers
Tenchu!!!